Professional Documents
Culture Documents
(AS AMENDED BY REPUBLIC ACT NO. 9576 and REPUBLIC ACT NO. 10846)
BASIC POLICY
The Corporation shall, as a basic policy, promote and safeguard the interests of the
depositing public by providing insurance coverage on all insured deposits and
helping maintain a sound and stable banking system.
STATE POLICY
PDIC exists to provide deposit insurance coverage for the depositing public to help
promote public confidence and stability in the economy.
PDICs functions
1. Deposit Insurer
2. Co-regulator of Banks
Deposits
The term deposit means the unpaid balance of money or its equivalent received by
a bank in the usual course of business and for which it has given or is obliged to
give credit to a
commercial,
checking,
savings,
time or
Provided, further, That subject to the approval of the Board of Directors, any insured
bank which is incorporated under the laws of the Philippines which maintains a
branch outside the Philippines may elect to include for insurance its deposit
obligations payable only at such branch.
What about branches and subsidiaries of foreign bank here in the Philippines?
PDIC Charter provides that the deposits in branches and subsidiaries of foreign
banks licensed by the Bangko Sentral ng Pilipinas (BSP) to perform banking
functions in the Philippines are insured by the PDIC.
Insured Deposits
The term insured deposit means the amount due to any bona fide depositor for
legitimate deposits in an insured bank net of any obligation of the depositor to the
insured bank as of date of closure, but not to exceed P500,000.00.
In determining such amount due to any depositor, there shall be added together all
deposits in the bank maintained in the same right and capacity for his or her benefit
either in his or her own name or in the name of others.
By Deposit Type:
1. Savings
2. Special Savings
3. Demand/ Checking
By Deposit Account:
1. Single Account
2. Joint Account
3. Account By, In Trust For (ITF) or For the Account of (FAO) another
person
By Currency:
1. Philippine peso
The Corporation shall not pay deposit insurance for the following accounts or
transactions:
In relation to number 3.
(PDIC Regulatory Issuance No. 2011-01)
R.A. No. 9576 stipulates that PDIC will not pay deposit insurance for the following
accounts or transactions:
The deposit liabilities of any bank which is engaged in the business of receiving
deposits as herein defined on the effective date of this Act, or which thereafter may
engage in the business of receiving deposits, shall be insured with the Corporation.
Whenever a bank is determined by the Bangko Sentral ng Pilipinas to be capital
deficient, the Corporation may conduct an insurance risk evaluation on the bank to
enable it to assess the risks to the DIF. Such evaluation may include the
determination of:
PDIC covers only the risk of a bank closure ordered by the Monetary Board. Thus,
bank losses due to theft, fire, closure by reason of strike or existence of public
disorder, revolution or civil war, are not covered by PDIC.
Extent of Liability
Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per
depositor. All deposit accounts by a depositor in a closed bank maintained in the
same right and capacity shall be added together.
If the deposit account in a closed bank is more than P500,000.00, what happens to
the excess of the maximum amount of insured deposit?
The claim for the uninsured portion of the deposit is a claim against the assets of
the closed bank.
The claim may be filed with the Liquidator of the closed bank within sixty (60) days
from publication of notice of closure.
However, payment of said claim will depend on the banks available assets and
approval of the Liquidation Court.
Adjustments
Under R.A. No. 9576, the PDIC may propose to adjust the MDIC, subject to the
approval of the President of the Philippines, in case of a condition that threatens the
monetary and financial stability of the banking system that may have systemic
consequences
What if there are several deposits in different branches of the same bank, will it be
insured separately?
If a bank has one or more branches, the main office and all branch offices are
considered as one bank.
Thus, if you have deposits at the main office and at one or more branch offices of
the same bank, the deposits are added together when determining deposit
insurance coverage, the total of which shall not exceed P500,000
CALCULATION OF LIABILITY
PDIC shall pay deposit insurance on all valid deposits up to the Maximum Deposit
Insurance Coverage of Php500,000, per depositor, of a closed bank.
SINGLE ACCOUNTS
2. By Accounts
In determining the insured deposit of single accounts, all deposits in the bank
maintained in the same right and capacity for his benefit either in his own name or
in the name of others shall be added together.
Total insured deposit should not exceed the Maximum Deposit Insurance Coverage
of Php500,000.
Single accounts are insured separately from joint accounts up to the Maximum
Deposit Insurance Coverage of Php500,000.
To simplify:
In the case where a depositor is the sole beneficial owner of a single, For the
Account of, By, and In Trust For accounts, the consolidated balances of these
accounts shall be insured up to Php500,000.
The depositors total shares in his/her joint accounts shall be separately insured up
to Php500,000.
A depositor with single accounts and joint accounts may have insured deposits of up
to Php1,000,000.
Explanations:
All the four deposit accounts (i.e., Account Nos. 1 to 4) are owned by the same
person, Juan Dela Cruz, and maintained in the same Bank (Head Office and all its
Branches), thus, the balance of the accounts will be added together, as they are
maintained in the same right and capacity, regardless of account type and banking
unit/branch. Total amount of insured deposit cannot exceed P 500,000.00, the
Maximum Deposit Insurance Coverage (MDIC).
Of the total balance of P 900,000.00, the amount insured is P500,000.00 and the
uninsured amount is P400,000.00.
Explanations:
The first three deposit accounts (i.e., Account Nos. 1 to 3) are owned by the same
person, Juan Dela Cruz, hence, the balance of the accounts will be added together.
A sole proprietor is wholly owned by the owner, hence, the Dela Cruz Flower Shop
(Account No. 4) owned by Juan Dela Cruz will be added to his first three accounts as
all of them (Account Nos. 1 to 4) are maintained in the same right and capacity. The
total amount insured cannot exceed P500,000.00.
Of the total balance of P 900,000.00, the amount insured is P500,000.00 and the
uninsured amount is P 400,000.00.
Case 3: Single, ITF and By Accounts
Explanations:
Juan Dela Cruz is the principal owner of three accounts (i.e., Account Nos. 1, 3 & 4).
As these are maintained in the same right and capacity, these accounts will be
consolidated.
The single account (Account No. 1) is under his name alone and the other two are
By accounts (Account Nos. 3 and 4) which are owned by him as the PRINCIPAL
DEPOSITOR or BENEFICIAL OWNER while Maria Dela Cruz and Pedro Dela Cruz
ACTED AS HIS AGENTS only. Thus, the total insured amount payable to Juan Dela
Cruz is P 500,000.00 and the uninsured amount is P700,000.00.
Antonio Dela Cruz on the other hand has only one account (Account No. 2), an ITF
account in which Antonio is the PRINCIPAL OR BENEFICIAL OWNER and Juan acted as
AGENT. Thus, Antonio Dela Cruz is entitled to a separate deposit insurance of P
400,000.00 for his savings deposit.
Joint Accounts are accounts held under more than one name.
1. Juan Dela Cruz has three accounts, one is under his name alone (Account No.
1) and the other two are jointly maintained by him and Maria or Pedro Dela
Cruz (Account Nos. 2 & 3).
2. For the two accounts (Account Nos. 2 & 3) which are jointly maintained by him
and Maria or Pedro Dela Cruz, each joint account is considered equally shared
among co-depositors unless otherwise indicated in the deposit document. The
insurance coverage of P500,000.00 will apply to the sum of shares of each co-
depositor in the insured portion of each joint deposit account.
3. For Account No. 2, the maximum deposit insurance is P500,000.00 which shall be
divided equally between Juan and Maria. The share of Juan Dela Cruz is
P250,000.00. There is no uninsured amount.
4. For Account No. 3, the maximum deposit insurance is P500,000.00 which shall be
divided equally between Juan and Pedro. The share of Juan Dela Cruz is
P250,000.00. The uninsured amount is P300,000.00, thus, his share in the uninsured
amount is P150,000.00.
For Savings Deposit jointly owned by Juan and Maria Dela Cruz (Account No. 2), the
share of Juan and Maria in the MDIC is P250,00.00 each while their share in the
uninsured portion is P50,000.00 each.
3. Shares of each co-owner in each of the joint accounts are added together and
insured up to P500,000.00 MDIC.
4. Juan Dela Cruz has three accounts jointly maintained with Maria and/or Pedro
Dela Cruz. All his shares in each of these accounts are added together. Hence, of
the P 650,000.00 total shares of Juan, P 500,000.00 is covered by deposit
insurance.
5. Maria Dela Cruz and Pedro Dela Cruz are also entitled to deposit insurance for
their respective shares in the accounts.
Case 6: Accounts Jointly Owned by Individuals/ Natural Persons and Juridical Persons
or Entities
2. XYZ Corporation is entitled to P500,000.00 deposit insurance for its Time Deposit
(Account No. 2).
3. The Demand Deposit (Account No. 3) maintained in the name of Juan Dela Cruz
and ABC Corporation, is presumed to belong entirely to ABC Corporation. Hence,
ABC Corporation is entitled to the P 500,000.00 deposit insurance.
Depositors with valid deposit accounts with balances of Php100,000 and below
are not required to file claims but shall have:
Payments to these depositors are sent as postal money orders to the depositors
mailing addresses.
2. Depositors who have outstanding obligations with the closed bank regardless
of amount of deposits.
4. Depositors who maintain their accounts under the name of business entities,
regardless of type of account and account balance.
5. Depositors with accounts not eligible for early payment, regardless of type of
account and account balance per advice of PDIC.
Claims are filed during the claims settlement operations period, as announced in
the Notice to Depositors published in national or local newspapers, or posted in the
bank premises and conspicuous places within the locality, and in the PDIC website.
Depositors have two (2) years from PDICs takeover of the closed bank to file their
deposit insurance claims.
3. Submit to
If filing personally:
Send the accomplished and notarized Claim Form and requirements to:
The Claims Processing Department
Philippine Deposit Insurance Corporation
4/F SSS Building, 6782 Ayala Avenue corner
V.A. Rufino Street, 1226 Makati City
Mode of payment
Payment of the insured deposits on such closed bank shall be made by the PDIC as
soon as possible either:
1. by cash;
Effect of Payment
2. The PDIC, upon payment of any depositor as provided for in Section 14 shall
be subrogated to all rights of the depositor against the closed bank to the
extent of such payment ;
If the claims of the PDIC against the bank are considered preferred credits, what is
the nature of the excess uninsured claim of the depositor against the bank?
Example
Maria deposited P600,000.00 in a bank. The bank closed and was turned over to the
PDIC.
General Rule: Failure to settle the claim within six months from the date of filing of
claim for insured deposit shall, upon conviction, subject the directors, officers or
employees of the PDIC responsible for the delay to imprisonment from six months to
one year.
Requisite: The failure was due to the grave abuse of discretion, gross negligence,
bad faith, or malice of the directors, officers or employees.
Exception: The validity of the claim requires the resolution of issues of facts and or
law by another office, body or agency including the case mentioned in the first
proviso or by PDIC together with such other office, body or agency.
General rule: All rights of the depositor against the PDIC with respect to the
insured deposit shall be barred:
1. If he fails to claim the insured deposits within two years from actual
takeover of the closed bank by the receiver; or
2. If he does not enforce his claim filed with the corporation within two
years after the two-year period to file a claim.
But all rights of the depositor against the closed bank and its shareholders or the
receivership estate to which the PDIC may have become subrogated, shall
thereupon revert to the depositor.
Bank examination
The PDIC may examine an insured bank with prior approval of the MB if, in its
opinion, such bank or its directors or agents have violated, are violating or about to
violate any provision of the PDIC Act or any order, rule or instruction issued by the
PDIC or any written condition imposed by the PDIC in connection with any
transaction with or grant by it.
Deposit splitting
This means that the transferee does not really own the deposit account, even if it is
in his name and is only acting as a dummy.
Elements:
2. There is a break up and transfer of said account/s into two or more existing or
new accounts in the name of another person/s or entity/entities;
Penalty
1. Imprisonment of not less than six (6) years but not more than twelve (12)
year
2. Or a fine of not less than fifty thousand pesos (p50,000) but not more than
ten million pesos (p10,000,000),
Exceptions:
1. If TRO is issued by the Court of Appeals.
2. The Supreme Court may issue TRO when the matter is of extreme urgency
involving a constitutional issue, such that unless TRO is issued, grave
injustice and irreparable will arise. Bond must be filed and if the case finally
decided that the applicant is not entitled to the relief sought, the bond shall
accrue in favor of the PDIC
CASES